GameFi Tokens Are On The Rise : Here’s What You Can Expect In 2024

Despite a somewhat sluggish start to the year, the crypto market has been on a tear over the latter half of 2023. To put things into financial perspective, over the course of the year, the sector has seen its total capitalization surge from $831 billion to approximately $1.7 trillion, thereby showcasing a growth of nearly 100%. Amid this meteoric rise, one sector in particular that has garnered an increasing amount of investor attention and mainstream traction is the ‘GameFi’ market.

In its most basic sense, GameFi can be thought of as a subset of decentralized finance (DeFi), merging key elements of blockchain technology with game theory so as to enhance consumer engagement while also strengthening users’ connections with various cryptocurrencies — especially those associated with certain GameFi tokens. 

A central feature of GameFi is the play-to-earn (P2E) model, which offers players real, tangible rewards for their virtual activities, including in-game cryptos and non-fungible tokens (NFTs). These assets can later be traded, sold, or utilized as collateral across other financial applications, providing tangible benefits to gamers in lieu of their time and effort.

GameFi Tokens Marketcap : A Closer Look at the Numbers

As things stand, the GameFi market boasts a total capitalization of around $19 billion as well as a daily trade volume of $1.2 to $1.9 billion. Moreover, as can be seen from the chart below, between Q1 and Q3 2023, the total capital entering this market rose from $7 billion to nearly $12 billion, signalling a growth of 40+%. Lastly, it bears mentioning that GameFi tokens currently represent 1.22% of the multi-trillion dollar crypto economy.

Total value locked within the GameFi market (source: Bitcoin.com)

According to analysts, as more and more people continue to enter the crypto fray, this relatively nascent market will continue to grow at a rapid rate. To this point, by 2028, the GameFi industry is expected to expand at a CAGR of 27.33%, reaching a cumulative valuation of $48.83 billion. 

In the middle of all this, one project that has really piqued the interest of GameFi enthusiasts across the globe is Upland. Launched in 2019, the project can be described as a virtual property trading game that lets players buy and sell digital versions of real-world properties, along with engaging in various activities like visiting/building cafes, treasure hunting, and using vehicles.

As things stand, the project lays claim to a client base of over 3 million registered players and 30,000+ active daily users. The game has secured partnerships with major sports organizations, including FIFA and the NFL Players Association, and is continually expanding its digital footprint by incorporating virtual versions of popular cities located across the United States, Latin America, and Europe.

Most recently, the Upland team revealed that it had successfully secured a $7 million extension to its Series A funding. This investment round, primarily backed by EOS Network Ventures in their inaugural venture into crypto gaming, comes as an addition to the initial $18 million raised by the company back in 2021.

Lastly, in early October, the project’s dev team revealed its intention to enable the trading of its in-game utility token, Spark, on the Ethereum blockchain. This decision followed a community governance vote, where a significant majority of 87.25% voted in favour of the move. By allowing Spark to be traded beyond the confines of the existing Upland ecosystem, the latter stands to become the largest digital open economy within the burgeoning metaverse landscape.  

Gamified Tokens Future

As the idea of gamification continues to muster more and more mainstream support, there is a plethora of data to suggest that the GameFi market has a bright future ahead of itself. For instance, several GameFi platforms, including Upland, have continued to witness a dramatic increase in user engagement due to the tangible rewards offered by them to their users. Therefore, it will be interesting to see how this space continues to mature and grow from here on out!